NIFTY CONSUMPTION

In this index, it is being designed to reflect both the behavior and performance of a diversified portfolio of companies that representing the domestic consumption sector that includes sectors such as Healthcare, Consumer Non-durables, Telecom Services, Auto, Hotels, Pharmaceuticals, Media & Entertainment, and many more. Also, the Nifty India Consumption Index comprises of 30 companies listed on the National Stock Exchange or NSE. During rebalancing of shares/ change in index constituents/change in investible weight factors (or IWFs), and the weightage of the index component (where applicable) is being capped at 10%. It can be further used for a variety of purposes such as the launching of index funds, benchmarking fund portfolios, and ETFs and structured products. The Eligibility Criteria for the Selection of Constituent Stocks:

• Also, the companies must rank within the top 800 by the average full market capitalization as well as average daily turnover for the last 6 months.
• The companies should also form a part of the consumption sector.
• Also, more than 50% of the company's revenue should come from domestic markets (rather than the export income).
• Also, its trading frequency should be at least 90% in the last 6 months.
• The company should also have a listing history of 6 months. As a company that comes out with an IPO would be eligible for inclusion in the index, and if it fulfills the normal eligibility criteria for the index for a 3 month instead of a 6 month.
• The final selection of 30 companies should be made based on the free-float market.

Index Re-Balancing: It is done based on a semi-annual basis, and the cut-off date is January 31 as well as July 31 of each year, i.e., and for a semi-annual review of indices, average data for 6 months ending the cut-off date is considered. Also, 4 weeks before the notice is given to the market from the date of the change. Index Governance: Also, a professional team manages all NSE indices, and there is a three-tier governance structure, which comprises the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity) and the Index Maintenance Sub-Committee.